Topic > A look at the BMW Group - 921

The BMW Group, headquartered in Munich, Germany, produces and sells BMW, MINI and Rolls Royce automobiles. Additionally, the company offers motorcycle and financial services, which deals with automotive leasing, fleet business, retail customer and dealer financing, customer warehousing business, and insurance business. Primarily, the BMW Group focuses firmly on the premium sector of the international automotive market and targets wealthy middle-aged men and women. Although the company's products contain the entire range of size classes and types of cars, BMW's international product line consists exclusively of premium class cars. In terms of global strategy, BMW focuses on mass customization to tailor products, pricing and distribution to consumers' personal selection. For example, part of BMW's product line includes the 3 Series ($20,000 to $50,000), 5 Series ($40,000 to $50,000), and 6 Series ($60,000 to $70,000). Although BMW emphasizes targeting premium markets, the organization has implemented different marketing mixes to sell cars to different socioeconomic segments. Therefore, BMW's global brand management platform takes into account and adapts to regional differences, while preserving the constant value of high class and luxury. This system of continuous dialogue between central markets and services establishes transparency and mutual trust and ensures that [the] brand is positioned and perceived as a premium brand globally (Interbrand 2). In general, BMW vehicles sell well to consumers who have high standards of luxury, quality and performance because BMW includes these attributes in its automobiles. In terms of volume, Europe remains their largest market. However, the company seeks to expand its subsidy package which turned out to be just the beginning of the packages the state was about to offer to BMW. The company's determination to keep plants non-union sparked an angry response not only from the United Auto Workers in the United States, but also from the German IG Metall Metalworkers union abroad. With continued increases in branch investments, including a new package of more than $100 million in 2003, the company's workforce has grown to more than 4,000 (GoodJobsFirst). However, recently, the company has depended heavily on workers hired through temporary agencies to counter periods of increased production. As these events continue to progress, BMW also continues to utilize and invest heavily in these cost-effective and profitable facilities. In summary, BMW's use of non-union labor adds to the trend of hard, low-wage work throughout the U.S. auto industry..